Correlation Between Europac Gold and Blur

Can any of the company-specific risk be diversified away by investing in both Europac Gold and Blur at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Europac Gold and Blur into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Europac Gold Fund and Blur, you can compare the effects of market volatilities on Europac Gold and Blur and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Europac Gold with a short position of Blur. Check out your portfolio center. Please also check ongoing floating volatility patterns of Europac Gold and Blur.

Diversification Opportunities for Europac Gold and Blur

-0.56

Correlation Coefficient

Europac Gold  Blur

Excellent diversification

The 3 months correlation between Europac and Blur is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Europac Gold Fund and Blur in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blur and Europac Gold is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Europac Gold Fund are associated (or correlated) with Blur. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blur has no effect on the direction of Europac Gold i.e., Europac Gold and Blur go up and down completely randomly.

Pair Corralation between Europac Gold and Blur

Assuming the 90 days horizon Europac Gold Fund is expected to generate 0.32 times more return on investment than Blur. However, Europac Gold Fund is 3.16 times less risky than Blur. It trades about 0.07 of its potential returns per unit of risk. Blur is currently generating about -0.02 per unit of risk. If you would invest  1,276  in Europac Gold Fund on May 6, 2025 and sell it today you would earn a total of  92.00  from holding Europac Gold Fund or generate 7.21% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	95.38%
Values	Daily Returns

Europac Gold Fund  vs.  Blur

Europac Gold

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Europac Gold Fund are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Europac Gold may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Blur

Risk-Adjusted Performance

Very Weak

Over the last 90 days Blur has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, Blur is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Europac Gold and Blur

The main advantage of trading using opposite Europac Gold and Blur positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Europac Gold position performs unexpectedly, Blur can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Blur will offset losses from the drop in Blur's long position.

The idea behind Europac Gold Fund and Blur pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.